UAE's building projects' value reaches US$228 billion in first half 2017
Source: BNC Network , Author: Posted by BI-ME staff
Posted: Tue July 25, 2017 5:06 pm

UAE. The combined value of 7,488 active building projects reached US$228 billion (Dh836.76 billion) by June 2017, according to BNC Network, – the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.

Active building projects constitute all types of commercial and residential buildings but not catering to education, healthcare, hospitality, retail sector which are in concept, design, tender, under construction or on hold.

Of these, 1,059 building projects belong to the high-rise category rising above 15 floors, with a combined project value exceeding US$100 billion (Dh367 billion). The number of mid-rise projects with floor levels of 4-14 storeyed buildings is 2,483 projects with a value of US$66 billion (Dh242.22 billion) while the number of low-rise projects stood at 3,946 with a value of US$61.9 billion (Dh227.12 billion).

The building projects constitute 82 per cent of all active projects in the UAE's urban construction sector and in dollar terms these projects account for 44 per cent of the total estimated value.

“The strong project pipeline is a reflection of the healthy construction sector, despite weaker global economic growth scenario – an indication that the UAE real estate and construction sectors are defying the global trend,” Avin Gidwani, Chief Executive Officer of BNC Network, says.

“While the lower oil price might have dampened the investor appetite, developers and contractors are going ahead with the building projects as planned. A number of these buildings are being developed to meet the anticipated rush during the Expo 2020 mega exposition.”

The latest BNC Intelligence report shows, 5,276 projects, worth US$99.4 billion (Dh364.79 billion) are currently under construction and tendering phase. Of the total 7,488 projects, 1,378 buildings, worth US$89.9 billion (Dh330 billion) were on hold, the report shows.

“Most of these building projects are expected to be completed by October 2020 – before the World Expo 2020 as the country gears up to handle the biggest inbound tourist rush unprecedented in its history,” Gidwani says. “BNC would continue to diligently monitor the construction projects market in the foreseeable future, serving our growing loyal customer base.”

In June, the number of building projects in the UAE increased by 3 per cent as compared to May, 2017, but in dollar terms, there has been no significant movement.

In June, 24 building projects with a combined estimated value around US$560 million (Dh2.05 billion) were put on hold in the UAE. The largest building project in dollar terms to be put on hold was Phase 2 of The Royal Estates located in Dubai worth US$350 million (Dh1.28 billion).

The latest BNC Intelligence report shows, a total of 57 building projects with a combined estimated value of US$2.2 billion (Dh8 billion) moved to construction from other stages during the month.

A total of 292 building projects with a combined estimated value of US$3 billion (Dh11 billion) were completed during the month.

BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

About BNC
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

It is used by thousands of business leaders and construction industry professionals around the world to track developments, gain insight on projects and do business in the construction industry. BNC covers construction projects, across all sectors including urban construction, mega developments, transportation, utilities, industrial developments and oil and gas and publishes over 2,000 construction analytics annually based on extensive research and analysis.

 

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